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If you have difficulty answering the following questions, learn more about this topic by reading our Manufacturing Overhead (Explanation).
Selling, general and administrative costs are part of manufacturing overhead.
Which of the following are part of manufacturing overhead?
To be in compliance with generally accepted accounting principles, selling and administrative expenses and interest expense should be allocated to the cost of products manufactured in order to properly value inventories on a manufacturer's balance sheet.
Manufacturing overhead must be assigned to both work-in-process inventory and finished goods inventory for external financial reporting purposes.
Only direct manufacturing costs are assigned to inventories and cost of goods sold.
Commissions paid to sell products are reported as part of the cost of goods sold.
Traditional costing is more likely to be associated with allocating manufacturing overhead on the basis of __________.
The depreciation on the machines used on the manufacturing line is considered to be __________ manufacturing cost.
In general, manufacturing overhead has increased as a percentage of product costs during the past 80 years.
The use of a plant-wide rate will be more equitable than the use of departmental rates for allocating manufacturing overhead.
Manufacturing overhead costs are also known as indirect manufacturing costs.
Using only machine hours for assigning manufacturing overhead will likely result in too ___________ costs for low volume products.
The salary of the president of a manufacturer is part of the manufacturing overhead costs.
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Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Read more about the author.
